Fertiliser Manufacturers In Crisis
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By Nompumelelo Moyo
Bulawayo, October 17, 2013-Fertiliser manufacturers in Zimbabwe are faced with challenges in producing sufficient quantities to meet the demand for the summer farming season as they are operating below capacity. One of the leading fertilizer manufacturers, Chemplex Corporation confirmed that producers were operating below capacity and this could impact on the overall production levels. “It’s a tight situation. We have been running at 20 percent capacity utilisation average from January to date. Demand has been low and we have no cash to buy our inputs right now. We have 50 000 tonnes in stock and between now and end of the season we want to produce 100 000 tonnes of fertilizer, some traders will add up 50 000 tonnes to make a total of 200 000 tonnes,” said Chemplex Corporation chief executive officer,Misheck Samson Kachere. Kachere disclosed that the government had already indicated that it would require 160 000 for distribution to farmers under its subsidised inputs programme. “They indicated that they want 80 000 tonnes of compound D fertiliser and 80 000 tonnes of Ammonium Nitrate for their direct programmes,” said Kachere. He said that the challenges for manufacturers are emanating from bad debtors. “Recovering our cash from creditors and other clients has been our major challenge. Logistics and utility supply is also a major challenge. If government availed US$30 million, our production was going to be boosted,” he said. Zimbabwe is currently faced with a food deficit with more than 2 million people in need of assistance to avert hunger. Critics blame President Robert Mugabe’s administration for decimating the country’s agricultural sector through grabbing land from white commercial farmers. However, Mugabe denies the charge. |
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